Reasonable steps to realise export proceeds were not proved, so the statutory contravention and penalty were sustained.

Failure to take reasonable steps to realise export proceeds within the prescribed period constituted contravention of section 18(2) read with section 18(3) of the Foreign Exchange Regulation Act, 1973. The appellants relied on an alleged auction by foreign customs and other circumstances beyond their control, but produced no documentary proof from the foreign authorities and no reliable evidence of effective follow-up, waiver requests, or other steps to secure payment. The statutory presumption under section 18(3) was not rebutted by credible material, so the contravention was established and the penalty was sustained.

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Issues: Whether the appellants contravened section 18(2) read with section 18(3) of the Foreign Exchange Regulation Act, 1973 by failing to take reasonable steps to realise the outstanding export proceeds within the prescribed period, and whether the penalty imposed was liable to be upheld.

Analysis: The record showed that the exports were made in 1982, but the export proceeds remained unrealised for several years. The appellants relied on an alleged auction of the goods by the customs authorities in Kuwait and on circumstances said to be beyond their control, but no documentary proof from the foreign customs authorities was produced. There was also no reliable material showing that the appellants had taken effective steps to contact the foreign authorities, secure the sale proceeds, seek waiver, or otherwise discharge the statutory obligation to realise the export proceeds. The presumption arising under section 18(3) was not rebutted by credible evidence, and the explanation offered did not establish reasonable steps within the meaning of the statute.

Conclusion: The contravention was established and the penalty was rightly sustained against the appellants.

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